Week of July 8, 2012 thru July 14, 2012

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / ET EVENT

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08-Jul 0130/2130 Boston Federal Reserve Pres. Eric Rosengren participates in a panel at the Sasin Bangkok forum 2012 on "Asia in Transformation," in Bangkok. http://www.sasinbangkokforum.org/

09-Jul 0515/0115 Chicago Federal Reserve Bank Pres.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / ET EVENT

-------------------------------------------------------------------------

08-Jul 0130/2130 Boston Federal Reserve Pres. Eric Rosengren participates in a panel at the Sasin Bangkok forum 2012 on "Asia in Transformation," in Bangkok. http://www.sasinbangkokforum.org/

09-Jul 1555/1155 San Francisco Federal Reserve Bank Pres.

US Debt Offering, Auction Calendar for Tsy and Agency Issues


July 6

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

TheFXSpot:Tepid US Payrolls Add To Mkt Angst;Euro At 2Yr Lows


NEW YORK, July 6 (MNI) - The market reacted negatively to a "tepid" U.S. non-farm payroll data Friday, with risk-averse global investors flocking to the dollar, thereby sending the euro to two-year lows near $1.2260.

CFTC: Comment Pd On Uncleared Swaps Margin Extended To Sep 14


WASHINGTON (MNI) - The U.S. futures market regulator Friday announced it will allow market participants additional time to provide feedback on its proposed rules creating initial and variation margin requirements for uncleared swaps.

The Commodity Futures Trading Commission extended the comment period to September 14 from July 11.

Obama Admin's Mortgage Mod Program Continues Steady Pace


WASHINGTON (MNI) - Data from the U.S. Treasury and the Department of Housing and Urban Development Friday showed the administration's flagship housing program continued to implement mortgage modifications at a steady, sub- 20,000 per month pace in June.

The Treasury said in its monthly report that roughly 17,600 borrowers with a mortgage received a permanent mortgage modification through the Home Affordable Mortgage Program in June -- a slight uptick from the 15,200 implemented in May.

While the program continues to make modest gains on a per month basis, over one million borrowers have received a permanent mortgage modifications through the program since its inception.

US Swaptions: Summer Vols Slip-N-Slide To 2-Month Lows


CHICAGO, July 6 (MNI) - Over-the-counter swaption volatility Friday fell to new lows for the week.

Coeure: Sovereign Bond Buying Now Task For ESM, Not ECB


AIX-EN-PROVENCE (MNI) - The European Central Bank's bond buying program remains "theoretically open" but that role is now more properly played by the European Stability Mechanism, ECB Executive Board member Benoit Coeure said Friday.

Speaking at a conference here, Coeure said the ESM was created to help stabilize the Eurozone and it would not be appropriate for the ECB to do what should now be done by governments.

Coeure said ECB could buy sovereign debt "only in the context of monetary policy." He added that central bank lending to the ESM for the specific purpose of buying sovereign bonds would violate the rule against monetary financing.

Barclays Shows, Stress Tests Can't Anticipate Everything


--UK's Serious Fraud Office Launches Libor Probe
--BOE's Turner Testifies Monday

WASHINGTON (MNI) - As several large international banks, including a few in the United States, wait for the Libor axe to fall on them, one question raised is how well bank stress tests can model unforeseen events. But there are many other questions as well.

Barclays, which claims it fully cooperated with authorities, is nevertheless paying them nearly a half billion dollars in penalties. Some other banks, not all of whom have been so cooperative, are waiting to hear what their penalties will be.

But regulatory penalties are only part of the potential damage, and perhaps not the most significant part, as the Barclays episode is demonstrating.

Eurosystem Backs EU Commission On Shadow Banking Coordination


FRANKFURT (MNI) - European central bankers backed proposals by the European Commission for a permanent EU-level process to coordinate monitoring of the shadow banking sector, according to a joint release of the Eurosystem Friday.

The Eurosystem, responding to a shadow banking Green Paper released by the EU Commission in March, said it was working to improve its own knowledge specifically of the securities financing and repo market, and proposed creating a central database on repos transactions that is fed directly by market infrastructures and custodian banks.

"The Eurosystem has a keen interest in obtaining more information on repo market activity, both for monetary policy implementation and financial stability considerations," the paper said.